Graham Holdings (GHC) Gained from the Successful Turnaround of Its Kaplan Education Segment

Core Insights - Longleaf Partners Small-Cap Fund reported a Q4 2025 return of 1.13%, underperforming the Russell 3000 Index at 2.40% and the Russell 2000 Index at 2.19% [1] - The Fund's annual return for 2025 was 7.56%, significantly lower than the Russell 3000's 17.15% and Russell 2000's 12.81% [1] - The Fund emphasized the importance of investing in companies with strong free cash flow during market volatility [1] Company Overview: Graham Holdings Company (NYSE:GHC) - Graham Holdings Company operates in diverse sectors including education, television broadcasting, and healthcare [2][3] - The stock experienced a one-month return of -6.58% but gained 9.76% over the past 52 weeks, closing at $1,067.83 with a market capitalization of $4.658 billion on February 24, 2026 [2] - The Kaplan education segment has shown growth after a multi-year turnaround, and the healthcare segment is navigating a leadership change effectively [3] Investment Sentiment - Graham Holdings Company was held by 27 hedge fund portfolios at the end of Q4 2025, an increase from 23 in the previous quarter [4] - Despite its potential, the company is not among the 30 most popular stocks among hedge funds, with some analysts suggesting that certain AI stocks may offer better upside potential [4]